The Trading Action In Gold

There’s no question in my mind that the intervention in the gold market is similar to the intervention that occurred in 2008 ahead of the financial crisis. However, I believe that,
because of the massive physical off-take in the eastern hemisphere, the western Central
Banks and bullion banks will be unable to push the price gold down on the same scale as it
was taken down in 2008 from March to October. Currently, gold is 15% above the low it hit at the end of 2015. It’s 7% above the interim low it hit at the end of 2016.

As of last week, money managers (hedge funds primarily) held the biggest net-short position in futures and options in records going back to 2006. A measure of gold volatility is near the lowest since January.

My good friend and colleague, Chris Marcus, invited me onto his podcast show that he produces for Miles Franklin.  We discuss the gold market, the deterioration U.S. economy and the reasons I believe that the trading action in gold and silver is preceding another financial collapse similar to 2008 only worse:

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In the latest issue of the Mining Stock Journal, which was released this afternoon, I present data that suggests the current decline in the price of gold is beginning to bottom and is setting up for a big move in to the fall. Also discuss my view of the theory that China has pegged the price of gold to the yuan and I present a gold stock idea that has dropped price to a level that makes it “stupid cheap.” You can learn more about this newsletter here: Mining Stock Journal information

4 thoughts on “The Trading Action In Gold

  1. Hey Dave, Thanks for another podcast. Try to take them all in. FWIW I typically do a small order with SD Bullion at least 1x a month. Last few months been doing probably 2.5x a month. Not big orders typically $600-1300 range. Have been buying mostly junk silver and small denomination pre 1933 gold coins. They are having trouble keeping them in stock. Some have been OOS 2-3 weeks. Have noticed their turnaround times are getting longer and they don’t take orders if they are showing OOS. I also noticed they are not showing receipt of checks I have sent in some now approaching 3 weeks since I mailed them. I called yesterday and offered to resend two checks that they were not showing receipt of. I was told to give them a few more days…… Something else is that they don’t do is cash checks until they are ready to ship (within typical check clearing confirmation) I have been doing biz with them for over 3 years and several dozen orders. I read this as confirmation as you point out the supply is becoming increasingly CONstrained. I think this is fast approaching the delays in 2008-2009 and perhaps another reset of the price to higher grounds. Would be interested to hear if this is happening at all on more current PM mintings and with other suppliers.

    1. I don’t think there is any shortage of gold except 2018 Gold Eagle. The premium for the latest minted Gold Eagle is usually a few more dollars but something changed in 2018. Now, the premium is usually 10-15 dollars more.
      The opposite is happening for the 2018 Platium Eagle which is around $20 less than the older Platium Eagle.

  2. Money printing will continue until moral improves or until
    the grocery shelves are empty. PPT hard at work as volume
    sucked but, the price levitated higher. These guys are magicians.

  3. I just got back from Walmart in a middle class suburb that I go to all the time. All I can say is that these people look like walking zombies of a low class to a no class. I look at these people and there is no sign of intelligent life. This just didn’t start like this right now or recently. This has been the case for at least three years, maybe longer. The well to do people have moved farther out and they spend alot of time driving all over the place. But the point is like you have been saying Dave, the middle class is being gutted into a new lower class of uneducated arrogant ignorant morons and idiots. Where this all leads to is, who the hell knows, but we know it has to be bad, very bad.

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